TSP Rebounds in March

The retirement funds in the federal employee Thrift Savings Plan finally had a good month.

After spending three months almost entirely in the red, all of the TSP offerings grew in March. The S Fund, invested in the stocks of small and midsize companies, grew the most for the month, at 8.24 percent. The growth did not erase the damage from earlier in the year: it was still down 0.7 percent for 2016.

The common stocks in the C Fund grew 6.79 percent in March, and were up 1.37 percent for the year to date. International stocks earned 6.59 percent last month, but were still down 2.24 percent for 2016.

The fixed income bonds in the F Fund gained 0.93 percent in March and were up 3.13 percent for the year so far. The government securities (G) fund had the most modest growth last month, increasing 0.15 percent. It was up 0.49 percent for 2016.

The lifecycle (L) funds – designed to move investors to less risky portfolios as they near retirement – all had a solid March as well. L Income, for participants who have already started withdrawing money, was up 1.53 percent. L 2020 was up 3.35 percent; L 2030, 4.54 percent; L 2040, 5.25 percent; and L 2050, 5.94 percent.

The L Fund returns were not as strong for the year to date, but were all in the black. L Income gained 0.62 percent in 2016 so far; L 2020, 0.47 percent; L 2030, 0.39 percent; L 2040, 0.3 percent; and L 2050, 0.15 percent.